April is here and while for many of us the New Year officially began in January, in financial terms, April 6th marks the beginning of the new financial year. It’s relevant for many of us because it is a great time to start new habits which will fit neatly into the many financial and accounting … Continued
A summary by Tina Weeks Philip Hammond delivered his first Spring Budget as chancellor yesterday. We’ve taken a closer look at what he had to say and summarise the most important changes that will affect our clients. The good news is there were no significant tax or pensions changes in this Budget that will have any … Continued
The changes to inheritance tax that were introduced in the 2015 Budget will soon come into effect, with some becoming the law as early as April 2017. With less than a year to prepare for these changes, it’s important to ensure you know what to expect and that … Continued
November 2015 saw Chancellor George Osborne announce a significant rise in the amount of stamp duty for second home and buy-to-let properties. The new level, which came into effect in April this year, is higher than that on residential property by three percentage points. What this means is that buying a second home for £200,000, … Continued
Auto-enrolment, the government initiative which made it compulsory for all businesses to enrol their employees in a pension scheme, celebrated its third anniversary last October. Whilst most employers have by this point got to grips with what they need to do to comply with auto-enrolment, those businesses that were some of the first to implement the initiative face a new challenge three years on: the first phase of automatic re-enrolment.
The Chancellor will need to reduce borrowing by £32bn in 2019-20 – the biggest ever annual cash consolidation – in order to meet his Budget surplus target by the end of parliament, according to a new post-Budget briefing report published by the Resolution Foundation.
Before the March 2016 Budget there had been much speculation that the Chancellor was planning big changes to the tax relief on pensions. However, just before the Budget, the Treasury scotched rumours of such changes and subsequently there were no changes to pension savings tax relief in the forecast Budget.
In the lead up to the budget announcement, George Osborne seemed to bow to the pressure David Cameron and other members of the Conservative Party were putting on him to soften his approach when it comes to pensions and tax relief.
George Osborne announced last year that the tax system as we currently know it will be phased out by 2020, after the Treasury described the system of tax returns as “complex, costly and time-consuming.” In its place, a new digital system will be rolled out by the government which purports to be easier to use and manage for both individuals and businesses.
There’s a lot that’s likely to change about your pension in the near future, which in turn will have an impact on all sorts of other factors regarding savings for your retirement. Depending on what changes the government imposes on how pensions are taxed and the amount of tax relief allowed on pension contributions, you may end up needing to pay considerably more each month towards your pension, or even end up working several years longer before you can retire.
